How do you get a pay rise?

Sooner or later it's a question that most employees ask themselves. There are two main ways to do it:

1. Ask your employer. This is a discussion that most people dread. But with the tips on this page it doesn't need to be hard.

2. If that fails, find a new job. Sometimes it's the only way to get paid what you are worth, either because your current employer won't give you a raise or for some reason just can't give you a raise.

Either way, it is a good idea to update your resume so as to get a fresh idea of your recent accomplishments, skills and experience. You can then use it to seek a new job if the discussions do not go well.

Good luck!

How to ask for a pay rise

Asking for a pay rise can be traumatic for a lot of people. In good times the raises may flow by themselves, but in tighter economic times you might have to go out and get that raise yourself. So, how do you do it?

The key is to treat it as a business negotiation, where you are the product. Don't make it about emotions. What you have to do is see it from the boss's side - ask yourself why should they give you a pay rise? 

How to prepare for the discussion

You should focus on demonstrating your value by providing specific, clear examples of your achievements. For example, if you have just had a good performance review, or if you have just completed a project or successfully pitched for a client or new order that brought in revenue, then these are great examples of value-adding achievements. Make sure you have some of these examples ready before you go in.

If you have a government job where it is important to demonstrate skills rather than business achievements, then make sure you have a list of qualifications that you have attained, whether it is that course you went on recently or the project where you demonstrated leadership and completed it on time and on budget.

You should also have a good idea of how much to ask for, based on how much you are worth for the job you do in the position you are in. You can get this information from other job openings, information published by industry associations, or salary surveys that are published by recruitment firms.

Time the discussion

Timing is important. You will have a better chance of getting a pay rise if you ask before your employer's next budget is finalised or at the time of your annual evaluation or review when your achievements will be fresh in your employer's mind. Don't ask just after the annual budget has just been set, because your boss's hands may be tied and he or she might not be able to give you more without making cuts in other areas, which is never popular for your workmates. 

It can also be a good idea to ask when there is a clear event to link to the increase in salary. If your role, duties, or management responsibilities have expanded, or if the company has just hit an important sales target, then the employer will be more open to granting your request. 

Don't spring the discussion on your boss - you probably won't get a commitment that you are looking for. Instead, schedule a meeting and let your employer know you want to discuss remuneration.

Negotiation tactics

First, did you prepare? Have you got your examples ready, and do you know what you are worth?

Start by getting your boss to acknowledge the value of your contributions before you talk about money. If you have recently undergone a performance review, this will be a good starting point. If not, start by talking about some of the examples you have prepared which show the value you have added or the sales you have made. You want the boss to be thinking "yes, you have had a good year and deserve to be rewarded".

Then mention that you would like to talk about your pay. Don't launch into your demands - be sure to listen carefully to what your manager says, so you can overcome any issues together. Be constructive. If he or she says you don't meet the technical skills requirement, ask if you could get there if you did a course in your own time.

Don't tell you boss you need the money, for school fees or a gambling debt or whatever. Everyone could use extra money, and it doesn't make you special. You will only get a raise if you deserve it, not because you have already spent it.

Don't be tempted to issue an ultimatum.  A non-negotiable demand is the most common blunder you can make when asking for a pay rise. In most cases, threatening to quit unless your manger meets your demand is going to backfire. You have to approach it like a business negotiation, not a ransom demand. This kind of behaviour shows you aren't very committed to the company, and could be a major negative.

Allow room in your negotiations for both sides to feel they have 'won'. Your goal is to improve your pay package, but your employer's goal is to keep the business profitable. By asking for an increase that is slightly larger than the figure you realistically hope to get, you will allow you and your boss to agree on a compromise amount, and you will both be happy with the results. Be prepared to suggest (and accept) alternatives to just a cash raise. This will demonstrate your flexibility, show you understand the business decision that your employer has to make, and allow room for further negotiation if the salary budget has limited room to move.

Alternatives to a cash raise

Consider negotiating for non-cash benefits to add to the value of your remuneration package, which may be easier for your employer to agree to. Examples include:

  • Performance related bonuses. Offer to make your requested bonus conditional on your team meeting its sales targets, or other key business objectives. This demonstrates your appreciation of the employer's business and could be more attractive than a fixed salary increase of a lower amount.
  • Flexible working hours.
  • Increased hours or overtime pay for extra work.
  • Shares in the company if it is listed.
  • Corporate membership of gyms and other recreational facilities, or an allowance for travel.
  • Company car or car parking.

What if you don't get it?

Keep it professional. Don't get emotional. Ask your boss if you can schedule another discussion (maybe in 3 or 6 months), and then make sure he or she is aware of all the good work you've done in the meantime.